Morgan Stanley launches Ethereum and Solana trusts at 0.14% fee

Morgan Stanley launched two spot crypto trusts on NYSE Arca at a 0.14% management fee, the lowest in the US market, with staking integrated from day one.

"These funds extend what we started with MSBT to the two largest Proof-of-Stake networks, with staking integrated from day one," Ally Wallace, Global Head of ETFs at Morgan Stanley Investment Management, said.

The Morgan Stanley Ethereum Trust (MSSE) and Morgan Stanley Solana Trust (MSOL) began trading July 28 on NYSE Arca. Both products are expected to pass 95% of staking rewards through to shareholders, with MSSE targeting 50% to 80% of its Ether staked and MSOL up to 100% of its Solana holdings, according to the fund prospectus. Figment, the largest non-custodial institutional staking provider, will operate the validators under SOC 2 Type II and ISO 27001 certifications.

The launch reflects two years of regulatory progress since spot Ether ETPs first reached US markets in July 2024 without staking. By embedding yield generation into a regulated exchange-traded vehicle, Morgan Stanley removes the operational barriers — key management, validator operations, on-chain reward accounting — that have kept many institutional investors on the sidelines. The 0.14% fee also pressures competitors including Grayscale and Bitwise to lower their own charges, potentially accelerating capital inflows into the two largest proof-of-stake networks.

The products are the first spot Ether and Solana ETPs from a major US bank-affiliated asset manager to include staking at launch, according to Morgan Stanley. SEC staff guidance and updated exchange listing standards through 2025 opened the path for staking-enabled ETPs, with the first such US products launching later that year.

For institutional investors, the trust structure provides Ether and Solana exposure through vehicles that can be held in standard brokerage accounts without requiring direct crypto custody or staking operations. "Our job underneath is simple to describe and hard to do well: run the validators, manage the risk, report accurately, the way we have for our institutional client base across the globe," Josh Deems, Head of Revenue at Figment, said.

The launch comes as prediction markets show slightly increased odds of Ether reaching $10,000 by year-end 2026, though current pricing suggests significant hurdles remain. Market participants will watch inflow levels into MSSE and MSOL as a gauge of institutional appetite for yield-bearing crypto products in regulated wrappers.

This article is for informational purposes only and does not constitute investment advice.